Wheat leads grains lower Tuesday
Wheat fell for the first time in three sessions as favorable weather in the U.S. southern Plains improves prospects for winter crops now being planted. Soybeans and corn also declined.
As much as an inch of rain fell in parts of Kansas and Oklahoma, the biggest U.S. growers of winter wheat that is used to make bread, in the past 48 hours, improving soil moisture for newly seeded crops, said Darrell Holaday, the president at brokerage Advanced Market Concepts in Wamego, Kan. Growers in the western third of Kansas have planted into dry soil the past three years, limiting yield potential for winter wheat.
"I don't know that I've ever seen wheat off to a better start," Mr. Holaday said. "The conditions have been excellent."
Wheat futures for December delivery on the Chicago Board of Trade fell 6 1/4 cents, or 0.9%, to $6.86 1/2 a bushel.
Soybean futures fell on speculation that production in Brazil will increase, and as the U.S. harvest progresses. Seeding in Brazil, the world's largest exporter of soybeans, is about 8% finished, slightly behind the 9% normally planted this time of year, said Tomm Pfitzenmaier, a partner at Summit Commodity Brokerage in Des Moines, Iowa. The U.S. soybean harvest is about 45% complete, and yields continue to be better than expected, Mr. Pfitzenmaier said.
Soybean futures for December delivery on the CBOT fell 7 1/4 cents, or 0.6%, to $12.65 3/4 a bushel. Corn for December delivery fell 1/2 cent, or 0.2%, to $4.36 1/2 a bushel in Chicago.
The lack of data from the U.S. Department of Agriculture due to the partial government shutdown has dampened enthusiasm in the grain and soybean markets, Mr. Holaday said. Without export sales reports every week, traders and hedgers are having a difficult time determining the amount of U.S. corn, soybeans and wheat actually being sold to overseas buyers, depressing prices, he said.
"We have rumors of exports, but we don't have any confirmation," Mr. Holaday said. "The lack of information is not positive for grains. People are starving for information."
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(END) Dow Jones Newswires
October 15, 2013 10:44 ET (14:44 GMT)
DJ Wheat Falls as Favorable Weather Boosts U.S. Crop Prospects; Soy, Corn Drop->copyright
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